Cost-Benefit Analysis of the High-Speed Train in Spain

Posted: 25 May 2005

See all articles by Gines de Rus

Gines de Rus

University of Las Palmas de Gran Canaria; University of Las Palmas de Gran Canaria

Vicente Inglada

Independent

Abstract

The high-speed train is a technological break-through in passenger transport which has allowed to increase railways share in modal split in medium range distances, competing with road and air transport. The first high-speed link in Spain was launched in April 1992, with high success according to occupancy rates and public opinion of its quality, safety and impact on regional development. The Madrid-Sevilla corridor includes several routes (commuting, long-distance and services provided using high-speed infrastructure but with Talgo technology). In this paper, an ex post cost-benefit analysis is carried out from demand and cost data available and under several assumptions about the life span of the project, growth hypothesis, time and accident values, and with a social discount rate of 6% in real terms. Economic evaluation of the project shows that the Spanish high-speed train project should have not been carried out in 1987 in that particular corridor.

Keywords: railways, high speed train, infrastructure, transport, cost-benefit analysis

JEL Classification: H43, H54, R41, R58

Suggested Citation

de Rus, Gines and de Rus, Gines and Inglada, Vicente, Cost-Benefit Analysis of the High-Speed Train in Spain. Available at SSRN: https://ssrn.com/abstract=675383

Gines De Rus (Contact Author)

University of Las Palmas de Gran Canaria ( email )

Campus de Tafira
35017 Las Palmas, Las Palmas 35017
Spain

University of Las Palmas de Gran Canaria ( email )

Campus de Tafira
35017 Las Palmas, Las Palmas 35017
Spain

Vicente Inglada

Independent ( email )

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